Changing CC&R in Washington

Started by ChrystalM • 6 replies • 3600 views

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ChrystalM (Washington)
Posts: 22

Posted:

Good Evening,

Our board of directors (we currently do not have a president, vice president, secretary, etc as we just formed the board in a new community just over a year ago) is looking to adjust some of the CC&R codes as this was put together by the builder before the houses of the community were even completed. We use a third party administrator for mailings, monitor our finances, adviser and mediator. The third party administrator as informed us directors that it's just way too much trouble to try and change anything in the CC&R. I don't believe that to be true if a great majority of the community agrees with the changes.

What are your thoughts on this process?

Many Thanks!

MelissaP1 (Alabama)
Posts: 13,836

Posted:

It is ALOT of work. Took us over 2 years to complete. I would suggest modifying the number of votes required to change your documents to adjust for future apathy. Our CC&R's took 90% to change but the others only 75%. Plus you all may want look at the "Special meeting " requirement.

Make sure to remove ALL references to the builder and even their voting system. There would be no more "A and B" votes. It would be one vote one household. Define what it is to be a member.

I also suggest updating references to new technology. More and more Green energy options are out there. Many documents limit it due to the appearances of the older models. So make sure things like satellite dishes are not disallowed etc...

Get a lawyer familiar with CONTRACTUAl/CORPORATE law. You all do NOT need a Real Estate lawyer. Keep in mind they will need to charge for their time, redrafting the documents, and court filing fees. It cost us close to $3K in all NOT counting providing copies.

It is worth the effort and costs. I recomend updating every 5 to 7 years. Things change that future updating adjustments will need to be made. good luck!!!

Former HOA President

JohnC46 (South Carolina)
Posts: 14,265

Posted:

Chrystal

It might be a bit premature to change your CC&R's. You all have just taken over. I say learn your ways about before undertaking this task. In a year or two you all will have more experience and a better handle on what needs changing.

It will take time, effort, and money so be sure once yoiu are ready, you have all your bases covered.

One "interesting/learning experience" project might be to take a copy and strike through all references to the declarant.

I also suggest you start by electing BOD Officers and boning up on Roberts Rules of Order.

Hope this helps.

CarolR11 (Colorado)
Posts: 2,563

Posted:

I agree with John46, Chrystal--first things first. Your Board needs to elect its officers if that's permitted in your documents, probably your bylaws.

In addition, you all do need to learn more about your bylaws and CC&Rs. Unless there's something totally unacceptable to homeowners in the latter, leave them alone for awhile. As Melissa points out, the costs for a total revision can be very expensive and it's probably not in your 2012 operating budget.

Alternatively, you may be able to delete the "developer Language" without a super majority of homeowners. See the below, but note it applies to Calif. and may not to your state. You may need to review your state's civil code or possibly corporations code. This kind of "tune-up" shouldn't cost a great deal, but you will need a good HOA attorney and allow for a lot of postage costs.

From davis-sterling.com:

"REMOVING DEVELOPER PROVISIONS
Declarant/Developer provisions may be deleted by a majority of those owners representing a quorum, regardless of any higher amendment requirements called for in the documents. The membership may delete any provisions that are unequivocally designed and intended or which by its nature can only have been designed or intended, to facilitate the developer in completing the construction or marketing of the development.

This may only be done after the developer has completed construction of the development, has terminated construction activities, and has terminated his or her marketing activities for the sale, lease, or other disposition of separate interests within the development. Civ. Code §1355.5."

GlenL (Ohio)
Posts: 5,491

Posted:

Chrystal welcome, as others have said it might be too early to change them, however don't wait too long and let owner apathy set in. I would start by downloading the Washington HOA statutes: http://apps.leg.wa.gov/RCW/default.aspx?cite=64.38

They may already have changed by legislation the CC&R's depending on when they were written.

Studies show that 5 out of 4 people have problems with fractions

JohnC46 (South Carolina)
Posts: 14,265

Posted:

I agree with Glen. No matter what one thinks, knows, etc., local rules/regulations can prevail.

That said, association rules/regulations can prevail as in see the post earlier about the association rules/regulations being tighter as per fence heights.

Hope this helps.

ChrystalM (Washington)
Posts: 22

Posted:

Good Morning Everyone!

I apologize for taking so long to get back to all the responses (which I greatly appreciate!). I was having login issues, but everything appears to be fine now.

I really appreciate everyone taking time to respond to this matter. I do see now both the need to wait, but to be keeping notes about changes that should occur. I'm hoping the new board that is elected this year will get some direction for the community as well as the board.

Again, thank you everyone!

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